PAYROLL OVERTIME CALCULATIONSPAYROLL REPORTING – TAXES

PERFECT FIT follows the standards that are used for calculating Workmen’s Compensation Insurance wages and overtime hours. By example:

Let’s say payroll is done weekly, regular time is 40 hours, and the employee has a base wage of $8.00 per hour.

If the employee works 42 hours, enter 42 in the TOTAL time worked, and 2 in the OVERTIME hours worked.

42 hours are rated at $8.00 per hour, and 2 hours are rated at $4.00 per hour. This gives the same result as 40 hours at $8.00 per hour and 2 hours at $12.00 per hour, time and a half.

The payroll checkstub shows both calculations to help the employee understand their wages.